Donald Trump has said he will impose 25% tariffs on the EU “very soon” and claimed the bloc was “formed in order to screw the United States”.
The US president made the remarks while holding his first cabinet meeting at the White House since his inauguration in January.
The world’s richest man Elon Musk, who leads the US Department of Government Efficiency but is not a cabinet member, was among those present.
During his second term as president, Mr Trump has sparked fears of a global trade war by either imposing, or threatening to impose, high tariffs on both America’s allies and geopolitical rivals.
Earlier this month the US government imposed 25% tariffs on goods imported from Canada and Mexico and a 10% tariff on imports from China.
Meanwhile, the 25% tariffs on Mexico and Canada were paused after agreements were reached on border security.
‘They’ve taken advantage of us’
Asked whether he had made a decision about imposing tariffs on the European Union, Mr Trump said: “We have made a decision, we’ll be announcing it very soon and it will be 25% generally speaking and that will be on cars and all other things.
“The European Union is a different case than Canada, a different kind of case, they’ve really taken advantage of us in a different way.
“They don’t accept our cars, they don’t accept essentially our farm products. They use all sorts of reasons why not, and we accept everything from them, and we have about a $300bn (£237bn) deficit with the European Union.”
He added: “The European Union, it was formed in order to screw the United States.
“Let’s be honest – the European Union was formed in order to screw the United States, that’s the purpose of it, and they’ve done a good job of it, but now I’m president.”
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Putin is ‘very cunning’
Asked what he will do if the EU retaliates, Mr Trump said: “They can’t, I mean, they can try, but they can’t.”
He added: “They can retaliate, but it cannot be a successful retaliation, because we just go cold turkey, we don’t buy anymore.
“If that happens, we win.”
The threat of tariffs comes at a time of fragile relations between the US and Europe as the Trump administration appears to favour Moscow over Kyiv as it tries to bring about peace in Ukraine.
Image: Elon Musk speaks at the cabinet meeting. Pic: AP
Ukraine to sign ‘very big’ deal
Asked at the cabinet meeting about security guarantees the US might be willing to offer Ukraine as part of peace negotiations, Mr Trump said: “I’m not going to make security guarantees beyond very much.
“We’re going to have Europe do that, because we’re talking about Europe as the next-door neighbour.”
Mr Trump also said Mr Zelenskyy will visit the US on Friday to sign a “very big” minerals deal.
The US president views the transaction with Ukraine as a fair way to recoup the billions of dollars that America has given Kyiv – via weapons and financial support – to help in their fight against Russia.
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Mr Trump went on to describe Russian President Vladimir Putin as a “very smart” and “very cunning person” during the cabinet meeting.
He said: “I think he wanted the whole (of Ukraine) when I got elected, (then) we spoke, and I think we’re going to have a deal.”
Ukraine NATO membership ruled out
Mr Trump also said he believes Mr Putin would never have invaded Ukraine if he was US president at the time.
Asked whether Ukraine could gain NATO membership, the US president said: “You can forget about it. That’s probably the reason the whole thing started.”
Mr Trump declined to comment when asked about whether he would ever allow China to take control of Taiwan by force.
“I never comment on that,” said. “I don’t want to ever put myself in that position.”
Mr Musk spoke briefly at the start of the meeting to explain why he believes the controversial cost-cutting measures his department has been carrying out have been necessary.
Cabinet members were then asked by reporters if they were happy with Mr Musk and how he has been carrying out his role.
Mr Musk started to answer the question, but Mr Trump interjected and said he might want to let cabinet members answer, before joking that if anyone disagreed, he might “throw them out”.
They rose to their feet in ecstatic surprise, shouting “heydar, heydar” – a Shia victory chant.
This was the first public appearance of their supreme leader since Israel began attacking their country.
He emerged during evening prayers in his private compound. He said nothing but looked stern and resolute as he waved to the crowd.
He has spent the last weeks sequestered in a bunker, it is assumed, for his safety following numerous death threats from Israel and the US.
His re-emergence suggests a return to normality and a sense of defiance that we have witnessed here on the streets of Tehran too.
Earlier, we had filmed as men in black marched through the streets of the capital to the sound of mournful chants and the slow beat of drums, whipping their backs with metal flails.
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Defiance on streets of Tehran
This weekend they mark the Shia festival of Ashura as they have for 14 centuries. But this year has poignant significance for Iranians far more than most.
The devout remember the betrayal and death of Imam Hussein as if it happened yesterday. We filmed men and women weeping as they worshipped at the Imamzadeh Saleh Shrine in northern Tehran.
The armies of the Caliph Yazid killed the grandson of the Prophet Muhammad in the seventh-century Battle of Karbala.
Shiite Muslims mark the anniversary every year and reflect on the virtue it celebrates, of resistance against oppression and injustice.
But more so than ever in the wake of Israel and America’s attacks on their country.
The story is one of prevailing over adversity and deception. A sense of betrayal is keenly felt here among people and officials.
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Many Iranians believe they were lured into pursuing diplomacy as part of a ruse by the US.
Iran believed it was making diplomatic progress in talks with America it hoped could lead to a deal. Then Israel launched its attacks and, instead of condemning them, the US joined in.
Death to Israel chants resounded outside the mosque in skies which were filled for 12 days with the sounds of Israeli jets. There is a renewed sense of defiance here.
One man told us: “The lesson to be learned from Hussein is not to give in to oppression even if it is the most powerful force in the world.”
A woman was dismissive about the US president. “I don’t think about Trump, nobody likes him. He always wants to attack too many countries.”
Pictures on billboards nearby draw a line between Imam Hussein’s story and current events. The seventh-century imam on horseback alongside images of modern missiles and drones from the present day.
Other huge signs remember the dead. Iran says almost 1,000 people were killed in the strikes, many of them women and children.
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Officially Iran is projecting defiance but not closing the door to diplomacy.
Government spokeswoman Dr Fatemeh Mohajerani told Sky News that Israel should not even think about attacking again.
“We are very strong in defence and as state officials have announced, this time Israel will receive an even stronger response compared to previous times,” she said.
“We hope that Israel will not make such a mistake.”
But there is also a hint of conciliation: Senior Iranian officials have told Sky News that back-channel efforts are under way to explore new talks with the US.
Israel had hoped its attacks could topple the Iranian leadership. That proved unfounded, the government is in control here.
For many Iranians, it seems quite the opposite happened – the 12-day war has brought them closer together.
To the sound of mournful chants and the slow beat of drums, they march, whipping their backs with metal flails.
It is an ancient ceremony going back almost 14 centuries – the Shia commemoration of Ashura.
But this year in particular has poignant significance for Iranians.
The devout remember the betrayal and death of the Imam Hussein as if it happened yesterday.
Image: Iranians gather ahead of Ashura
We filmed men and women weep as they worshipped at the Imamzadeh Saleh Shrine in northern Tehran.
The grandson of the Prophet Muhammad was killed by the armies of the Caliph Yazid in the seventh century Battle of Karbala.
More on Iran
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Shia Muslims mark the anniversary every year and reflect on the virtue it celebrates – of resistance against oppression and injustice. But more so than ever this year, in the wake of Israel and America’s attacks on their country.
The story is one of prevailing over adversity and deception. A sense of betrayal is keenly felt here by people and officials.
Image: Men and women weeped as they worshipped at the Imamzadeh Saleh Shrine
Many Iranians believe they were lured into pursuing diplomacy as part of a ruse by the US.
Iran believed it was making diplomatic progress in talks with America, which it hoped could lead to a deal. Then Israellaunched its attacks and, instead of condemning them, the US joined in.
“Death to Israel” chants resounded outside the mosque in skies that for 12 days were filled with the sounds of Israeli jets.
There is a renewed sense of defiance here.
One man told us: “The lesson to be learned from Hussein is not to give in to oppression, even if it is the most powerful force in the world.”
Image: ‘I don’t think about Trump. Nobody likes him,’ one woman tells Sky News
A woman was dismissive about the US president.
“I don’t think about Trump. Nobody likes him. He always wants to attack too many countries.”
Pictures on billboards nearby link Imam Hussein’s story and current events. They show the seventh century imam on horseback alongside images of modern missiles and drones from the present day.
Other huge signs remember the dead. Iran says almost 1,000 people were killed in the strikes, many of them women and children.
Officially Iran is projecting defiance, but not closing the door to diplomacy.
Government spokeswoman Dr Fatemeh Mohajerani told Sky News that Israel should not even think about attacking again.
“We are very strong in defence, and as state officials have announced, this time Israel will receive an even stronger response compared to previous times. We hope that Israel will not make such a mistake.”
Image: Dr Fatemeh Mohajerani said it would be a mistake for Israel to attack again
But there is also a hint of conciliation. Senior Iranian officials have told Sky News back-channel efforts are under way to explore new talks with the US.
Israel had hoped its attacks could topple the Iranian leadership. Those hopes proved unfounded. The government is in control here.
For many Iranians it seems quite the opposite happened – the 12-day war has brought them closer together.
Two American security workers in Gaza were injured after grenades were thrown during food distribution in Khan Younis, the Gaza Humanitarian Foundation (GHF) has said.
In a statement, the US and Israeli-backed aid group said a targeted terrorist attack was carried out at one of its sites in southern Gazaon Saturday morning.
The two Americans injured “are receiving medical treatment and are in stable condition,” it said, adding that the delivery of aid was “otherwise successful” and that “no local aid workers or civilians were harmed”.
GHF didn’t say exactly when the incident happened but claimed Hamaswas behind the attack, adding: “GHF has repeatedly warned of credible threats from Hamas, including explicit plans to target American personnel, Palestinian aid workers, and the civilians who rely on our sites for food.
“Today’s attack tragically affirms those warnings.”
Later, the aid group posted a picture on social media, which it said showed “fragments of a grenade packed with ball bearings” that was used in the attack.
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Asked by Sky’s US partner network, NBC News, whether the two injured individuals were responsible for handing out aid or were responsible for providing security, GHF said they were “American security workers” and “two American veterans.”
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The aid group did not provide specific evidence that Hamas was behind the attack.
The US and Israeli-backed group has been primarily responsible for aid distribution since Israel lifted its 11-week blockade of the Gaza Strip in May.
According to Gaza’s health ministry, 600 Palestinians have been killed while seeking aid from GHF sites as of 3 July, which charities and the UN have branded “death traps”.
Meanwhile, the Associated Press has reported that Israeli-backed American contractors guarding GHF aid centres in Gaza are using live ammunition and stun grenades.
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Contractors allege colleagues ‘fired on Palestinians’
GHF has vehemently denied the accusations, adding that it investigated AP’s allegations and found them to be “categorically false”.
Israel’s military added that it fires only warning shots and is investigating reports of civilian harm.
It denies deliberately shooting at any innocent civilians and says it’s examining how to reduce “friction with the population” in the areas surrounding the distribution centres.